Summary

China’s yuan hit its weakest level since 2007 after Trump’s new tariffs on Chinese goods took effect, deepening U.S.-China trade tensions.

The onshore yuan closed at 7.3498 per dollar, while the offshore version briefly touched a record low of 7.4288.

Beijing intervened by directing state banks to sell dollars to limit the decline.

Analysts warn the tariffs could slash Chinese exports to the U.S. by over half and shrink GDP by up to 1.5%. The U.S. accused China of currency manipulation to blunt tariff impacts.